When discussing pure competition, the term long run refers to a period of time long enough to allow: a. Firms already in an industry to either expand or contract their capacities. b. New firms to enter or existing firms to leave. c. Both a and b. d. None of the above.
Q: what is difference between perfect and pure competition? Highlight the assumptions of perfect…
A: Pure Competition is a subpart of perfect competition Pure competition is a market situation where…
Q: Which of the following distinguishes the short run from the long run in pure competition?
A: Pure Competition or Perfect Competition is defined as a theoretical market structure where all the…
Q: What is the Imperfect competition that refers to any form of market structure other than perfect…
A: Perfect competition refers to a market in which there is many seller and buyer dealing in a…
Q: explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits…
A: The average total cost (ATC) refers to the cost of a single unit, includes the average variable cost…
Q: Suppose the shirts industry is perfectly competitive and begins in a long-run equilibrium. (a)…
A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…
Q: What are the assumptions of perfect competition? What are the prospects for profitability in the…
A: The perfect competition is a theoretical market structure, which follows some assumptions. In this…
Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…
A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…
Q: Strictly speaking, pure competition has never existed and probably never will. Then why study it?
A: ANS Pure competition is the form of market where there are many sellers & many buyers and the…
Q: Are the products different?-perfect/pure competition
A: Perfect competition is the one where there are many buyers and sellers and this reduces the power…
Q: • Please explain the difference between the short run and long run equilibrium under a per- fectly…
A: Perfect competition is the market structure which is characterized by a large number of firms with…
Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…
A: Wal-Mart is not the best example of perfect competition. As it can be configured as an oligopoly.…
Q: der perfect competition, firms profit in the long run will be abnormal profits.
A: A firm's profit is maximized profits in a perfectly competitive market Where marginal revenue (MR)…
Q: The diagram below, shows the cost structure for a firm in perfect competition. Assume that the…
A: The market price in a perfect competition market is 12. At this price, MC intersects ATC. It…
Q: What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: What type of product by individual firms (none, total, some etc) are in a perfect competition and…
A: Perfect competition is a market structure in which all producers and consumers have complete and…
Q: Define Perfect Competition in your own words and what are the characteristics of a Perfect…
A: Perfect competition Perfect competition is a market form in which a large number of buyers and…
Q: If a firm's total revenue is $100, it's total cost is $130, and its total fixed cost is $40. Should…
A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…
Q: Q2. Ramzah owned a burger stands along the beach. Figure 2 shows Ramzah’s cost curves. Figure 2:…
A: There is many type of market in the economy we can discuss about the perfect competition market here…
Q: Pretzel stands in New York City are a perfectly competitive industry in long-runequilibrium. One…
A: Perfect Competition refers to the type of market where there are large numbers of buyers and sellers…
Q: A large city has nearly 500 restaurants, with new ones entering regularly as the population grows.…
A: A perfectly competitive market alludes to a market structure in which there are countless firms and…
Q: Which of the following is true about the long run in a compe industry? There are more firms…
A: The perfectly competitive market is characterized by the presence of a large number of buyers and…
Q: What are three short-run outcomes in the perfect competition?
A: In the short-run, the perfect competitive firms, can have three outcomes.
Q: Under perfect competition, which of the following are the same (equal) at all levels of output? a.…
A: Perfect Competition is the market structure where there are large number of buyers and sellers. They…
Q: When can you say that their is presence of a strong perfect competition?
A: A real life example of perfectly competitive market is the farmers market. There are a large number…
Q: If the firms in a competitive industry incur an economic loss, what happens to supply, price,…
A: If firms earn economic loss, some of them will exit the market. This will decrease market supply,…
Q: Explain different possibilities of a firm under perfect competition in short and long run. Explain…
A: Market structure refers to the different characteristics of the markets that differentiate between…
Q: 1. With a new understanding of economic analysis, Corn Mart, wants your opinion on what to do.…
A: As given market price is $4. By using following formula to calculate missing values of table Total…
Q: An example of a perfectly competitive industry is: A. cell phone service B. the automobile industry…
A: In a perfectly competitive market, there are many buyers and sellers. Firms do not have any control…
Q: There is no incentives to innovate in a perfect competition market. Do you agree? Explain.
A: When talking about perfectly competitive market, it is the place with a large number of buyers and…
Q: on in sh
A: Perfect competition is a market structure which leads to the Pareto-efficient allocation of…
Q: In perfect competition market, Firms have perfect knowledge of market. What does that mean?
A: A perfect competitive market structure has many buyers and sellers. All the firms are the price…
Q: Perfect Competition I
A: There are 2 forms of market: Perfect and Imperfect market form. These includes markets like: Perfect…
Q: A cashew (a type of nut) farmer, named Ted, generated a large economic profit this year from a great…
A: Economic Profit is calculated by deducting total cost from total revenue. Firms usually earn…
Q: How does perfect competition lead to allocative and productive efficiency? Perfect competition leads…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Explain market conditions in the long run
A: In the long run, perfectly competitive marketplaces look different than they do in the short run.…
Q: Using examples, explain the down-sloping and upsloping long run ATC. Why may pure competition earn…
A: In a competitive market there are large number of firms producing identical products thus acting as…
Q: explains why in perfect competition, there are no economic profits or losses in the long run?
A: A market is a place where the buyers and sellers interacts with each other and decides to exchange…
Q: Write down some examples of industries that are (close to) perfectly competitive. What attributes do…
A: Perfect competition is a kind of market in which a large number of suppliers of a homogenous…
Q: Explain why in the long run perfect competitive firms can only break even.
A: Perfect competition refers to the market where homogeneous products are produced. An individual firm…
Q: 4. You read in a business magazine that farmers are reaping high profits. With the theory of perfect…
A: Initially the farmers earned high profits, but moving on to a longer period, in the perfect…
Q: Write down the assumptions of perfect competition
A: Basic assumptions of a perfectly competitive market: 1. large number of buyers and sellers - It…
Q: explain how the costs of the firm are calculated, and the way that prices are determined in perfect…
A: Perfect competition refers to a market situation in which there are many buyers and sellers in the…
Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…
A: Perfect competition refers to the market structure where the number of buyers and sellers are large…
Q: What does perfect competition mean and what are the concepts of it?
A: Perfect competition refers to the market structure featuring more number of sellers and buyers in…
Q: 2 b. Explain the situation when the firm under perfect competition continues production in the short…
A: Under the perfect competition, firms are price takers. The price of goods and services determined by…
When discussing pure competition, the term long run refers to a period of time long enough to allow: a. Firms already in an industry to either expand or contract their capacities. b. New firms to enter or existing firms to leave. c. Both a and b. d. None of the above.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- What type of product by individual firms (none, total, some etc) are in a perfect competition and how easy is it for a business to enter and exit the perfect competition market structure?What are some characteristics of perfect competition? Is the Banana market a perfect competition? When you are buying bananas, what is your decision making process? Do you have any favorite brand of banana? How can companies in the market compete? Please name some other examples of perfect competition?a) How does imperfect competition differ from perfect competition? b) True or False and explain: If a firm in imperfect competition makes economic profit in the short run they can sustain it in the long run. c) True or False and explain: In imperfect competition all firms charge the same price.
- 1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry and exit of firms affects resource flows and long-run profits and lossesWhy is perfect competition assumed to be the best market situation in most cases? Draw a graph showing the long run result of perfect competition and explain why it benefits society.Show graphically and explain what happens in competitive firm and in market in short and long run if: (a) Consumers' income increases.(b) Consumers' income decreases.
- Suppose the shirts industry is perfectly competitive and begins in a long-run equilibrium. (a) Pluto Company invents a new production process that reduces the production cost. What happens to Pluto Company’s profits and the price of shirts in the short run when Pluto Company’s patent prevents other firms from using the new technology? (b) What happens in the long run when the patent expires and other firms are free to use the technology?When are you are you expecting companies to produce in the short run?A. costs equal equal revenueB. price equals marginal revenueC. Average costs equal marginal costsD.marginal revenue equals marginal costHow does perfect competition address the problems of Allocative and Productive efficiency? Assume this is a constant or increasing cost industry. Start your analysis from a point of economic profit or loss, your choice. Explain this in no less than 50 words, or less if you employ graphs. In your explanation, define each term, define triple equality, does it matter if this is the short or long run? why? How is Allocative or Productive efficiency achieved, or not? How, if at all, do the existence of externalities alter your analysis?
- Pretzel stands in New York City are a perfectly competitive industry in long-runequilibrium. One day, the city starts imposing a $100 per month tax on each stand.How does this policy affect the number of pretzels consumed in the short run and thelong run?a. down in the short run, no change in the long runb. up in the short run, no change in the long runc. no change in the short run, down in the long rund. no change in the short run, up in the long runwhat is difference between perfect and pure competition? Highlight the assumptions of perfect competition in detailHello, i have some multiple choice questions Roots Wholefoods sells fruit and vegetables in a perfectly competitive market. Which of these statements about the decisions which it faces is true? a) Its downward sloping demand curve ensures that it can make economic profits. b) Its constant returns to scale in production ensures that it faces constant marginal costs. c) It does not have to worry about the entry of other firms, ensuring that its profits can last for a long time. d) In the long run, it expects to make zero economic (or supernormal) profits.